Socialist Economy
An economy in which the state owns resources and manages and organizes them and the central idea in a socialist economy is that all people have similar rights, and this economy relies on collective ownership of all means of production, and the distribution of resources available to all members of society equally with some regard for the efforts made by individuals, and the basic function In the economic system, defending companies and institutions in the state, such as public ownership companies, cooperative companies, and others.
The Foundations of Socialist Economics
Public Ownership
It is the participation of all members of society in the ownership of the means of production, and the state controls all economic activities, it owns the ownership of the distribution of lands according to the areas of use, and it is they who determine the proportions of resources directed and produced for the manufacture of this consumer, production and other resources, and all members of the state cooperate in providing assistance Each according to his capacity and ability to produce, and the wages are distributed to each person according to his need.
Non-recognition of a Profit Incentive
It is to meet the needs of society, and not to access abundant profit, because the state considers it a misfortune in the process of distributing wealth, so abundant profit replaces the national and national sentiment towards the state and full responsibility for developing the national economy.
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Central Planning
It mainly depends on the central planning of implementation. The plans are drawn up based on the opinion of the producing units and the planning body is responsible for this. The final decision on how to put plans in place is the units responsible for the production process.
Disadvantages of the Socialist Economy
Low Productivity
Equal wages for workers, regardless of the amount of production for each individual, and this leads to low productivity in a low way and affects the economy in general.
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Lack of Incentive to do Business
It harms their weak motivation and the lack of high-speed business completion, which harms the country’s lower productive capacity. It is the nature of the human person who loves possession, and in this case, deprives him of ownership and becomes dependent on others instead of relying on himself, and this harms individual’s equal levels of poverty.
Lack of Economic Efficiency
Failure to achieve justice between individuals, whether economic, social, or other, and suppress freedom, and prevent them from owning anything and this harms the prevalence of thefts, corruption, exploitation, problems, and slavery.
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